Nedbank has signed a binding agreement to acquire Durban-based payments fintech iKhokha in an all-cash transaction valued at R1.65 billion ($93.3 million), marking a major step in its strategy to strengthen digital financial services for small and medium enterprises (SMEs).
Under the terms of the deal, iKhokha will retain its brand identity and leadership team, supported by a management lock-in to ensure continuity. The transaction, which is subject to regulatory approval, is expected to close in the coming months.
Nedbank said the acquisition will deepen its push for financial inclusion and enhance its capacity to empower entrepreneurs through digital solutions. The bank’s Group Managing Executive for Personal and Private Banking described the agreement as a pivotal moment in its SME-focused initiatives, noting that iKhokha’s technology aligns seamlessly with Nedbank’s wider financial service offerings.
Founded in 2012, iKhokha has established itself as a key player in South Africa’s fintech space. The company provides mobile point-of-sale devices, a card payments app, and business management tools. It processes more than R20 billion ($1.1 billion) in annual digital payments and has disbursed over R3 billion ($169.7 million) in working capital to SMEs.
The deal also represents a successful exit for iKhokha’s investors, including Apis Partners, Crossfin Holdings, and the International Finance Corporation, who have supported its growth journey.
For iKhokha, the acquisition provides a platform to scale innovation and deliver more value to merchants. Its co-founder and CEO said the partnership with Nedbank will accelerate the fintech’s ability to expand services to entrepreneurs nationwide.
Industry analysts note that the move underscores a broader trend of legacy banks partnering with or acquiring fintech firms to remain competitive in a digital-first era. By integrating iKhokha, Nedbank not only expands its digital capabilities but also reinforces its role in shaping South Africa’s evolving financial landscape.
